Evercore ISI Keeps FactSet Rating In-Line, Cuts Price Target to $394.

Evercore ISI Keeps FactSet Rating In-Line, Cuts Price Target to $394.

In a recent update, Evercore ISI has maintained its FactSet rating for Brinker International at "In Line," but has reduced its price target to $394. This adjustment comes after the company's positive fourth-quarter results, which exceeded Wall Street's expectations. Brinker International, which owns and operates popular franchises such as Chili's Grill & Bar, Maggiano's Little Italy, and Just Wings, reported consistent traffic and sales performance, as well as slightly higher fiscal year 2026 earnings per share estimates than analysts' expectations Chili's parent Brinker International can jump more than 30%, Evercore ISI says^[1].

The downgrade in the price target is a result of Evercore ISI's analyst David Palmer's new estimates for the company. Palmer upgraded Brinker to "Outperform" and increased his price target to $210, suggesting a potential 32% upside for the stock. However, this new target is still significantly higher than the current $394. Palmer's upgrade was based on the company's strong performance and the potential for sustainable same-store sales (SSS) growth, driven by customer satisfaction improvements, effective marketing, and new unit expansions Chili's parent Brinker International can jump more than 30%, Evercore ISI says^[1].

Despite the positive outlook, the current price-to-earnings (P/E) valuation is considered 3 turns more expensive than the industry average. However, Palmer believes that Brinker is transitioning to sustainable growth, warranting a more Darden-like valuation. The analyst highlighted Chili's recent ribs relaunch, new skillet queso recipe, improved sides, and better frozen margaritas as key drivers for growth Chili's parent Brinker International can jump more than 30%, Evercore ISI says^[1].

Shares of Brinker International rose more than 2% following Palmer's upgrade, reflecting investor optimism about the company's future prospects. The stock has gained 20.2% this year, indicating strong market confidence in the company's performance and growth potential Chili's parent Brinker International can jump more than 30%, Evercore ISI says^[1].